BSBFIA301: To Provide You With An Opportunity To Correctly Maintain Daily Financial Records: Maintain Financial Records Assignment, VU, Australia

1. cash book or financial accounting program;

2. Employment records

3. Bank accounts

4. Sales records

5. Proof or purchases

6.  Workplace training records

 Question 2: Define debtors/creditors.

 Debtors are those who owe money to any person/company. There are obligations to be paid to someone.

Creditors are people or companies that have granted credit or money to third parties. If a company owes someone money, the recipient is the creditor.

 Question 3: What is gained by reconciling the debtors’ and creditors’ systems?

 When we manage to reconcile the accounts, we find the financial balance because debtors pay what they owe and creditors receive, all of them executing their rights and duties.

 Question 4: What are three legal requirements as outlined by the ATO?

The obligations are:

1. The date the Pay as you go (PAYG) withholding must be paid;

2. The date by which Payment Summaries must be completed and issued;

3. Superannuation reporting and lodgement dates;

Question 5: Match the following terms with their definition by drawing a connecting line

Financial discrepancies are unintentional errors that disorganize and cause confusion in the accounts. When found, they must be corrected immediately.

They can occur when we do not account for bank charges, we have dishonored checks, among others. They occur in some documents such as sales invoices, sales credit notes.

When the accounts are not correct, for example, the purchase invoice is different from the amount that came out of the company’s account. There is a discrepancy between the accounts.

Question 2: If the discrepancy needs referring over to the designated person, who could that be?

When we find discrepancies, we must pass them on to the designated people in accordance with organizational and legislative

requirements. These people can be the bank, the line management, and line authorizations. Always send to the senior manager and the responsible part of the organization.

Credit is when we subtract money from one and with the debit, we add money to an account. When dealing with Credits and debits in the accounting area, they are used to organize the accounts. To credit is to subtract money from an account and to debit is when we add to an account.

Question 2: What is double-entry bookkeeping?

Double-entry bookkeeping is an accounting method in which a transaction is also recorded in two or more accounts. The debit is made in at least one account and the credit is made in at least one other account.

For this, we use the accounting equation which is one of the fundamental principles of accounting. In it, we can analyze that both sides of the equation are equal. If they are not, there is an error in the books.

Assets = Liabilities + Equity.

So, if we have an increase in assets, liabilities must also increase so that the equation is balanced and correct.

Question 3: Define the following terms:

Assets: They are economic values, a set of assets and rights of the organization. They are money, buildings, land, equipment, machinery and business vehicles. Accounts receivable are also part of the assets.

Liabilities: These are the bills, duties, that the company has to pay. They are loans, accounts payable and other liabilities to be paid by the company. Each type of liability will have a separate account.

Equity: These are the assets less the company’s liabilities. All shareholder investments are equity. Each of them has a separate account at the company.

Revenue: Money an organization is earning.

Expenses: It is the money that the company spends on services that are not linked to sales. These are administrative services such as office supplies, salaries, advertising.

Question 4:From the following, state which are assets, liabilities, revenue, expenses and equity by placing a tick in the appropriate column

Question 5: Write the appropriate journal entries for the following.

a.  Lots of Fun Pty Ltd purchased $500 of clothing for resale purposes from Sports Clothing Pty Ltd on credit.

b. Lots of Fun Pty Ltd received a bill for $200 from Telstra

c.  Lots of Fun Pty Ltd paid the fortnightly salary of $2,500 of Joe Toff (Executive Director)

Question 6: Balance the following accounts

Bank Account

Question 7: Isabella purchases TV sets to resell in her shop.  She purchased them from JB HiFi on credit.  Using the rules of double-entry which is correct?

(a)    Assets increased – Liabilities increase

(b)   Expenses increased – Liabilities decreased

(c)    Assets decreased – Liabilities increased

(d)   Expenses increased – Liabilities increased

Letter (D)

Write at least 2 sentences to explain your reasoning

As she bought devices to resell, she increased her inventory = liabilities.

When buying on credit, it will increase the company’s expenses to pay for the goods.